Minister of Information and Culture, Lai Mohammed has said the country’s economy is doing well compared to the economies of South Africa, Russia and other countries in recession.
The minister added that the recession is unavoidable due to the global collapse in oil prices aroused by the coronavirus pandemic.
The economy declined again in the third quarter of this year due to the rising debt profile, inflation and unemployment in Nigeria.
According to the data obtained from the World Bank, 2020 recession is the worst in 36 years showing that the country’s Gross Domestic Product dropped by 10.92 per cent in 1983 and 1.2 per cent in 1984.
In the 2020 report of the National Bureau of Statistics, on Saturday, the GDP, the broadest measure of economic prosperity, fell by 3.62 per cent in the three months up till September.
Lai while speaking on the report said the government is optimistic that with its arbitration measures, the recession will be short-lived.
He said, “It is true we are in a recession. Recession comes when a country records two consecutive quarters of negative growths. But we must go beyond that to understand that despite that, our economy is still very well in circumstances.
“The main reason why we have entered into this recession is the oil sector. The oil sector recorded -13.89% and that is the worst in 14 quarters. Of course, it is easy to understand why; with the pandemic, there is low demand for oil…but when you look at the non-oil sector which is about -2.51 % in Q3, it is far better than what it was in the Q2.
“Overall, yes, we are in a recession and it is inevitable but while our Q2 result was -6.1%, South Africa was -50% and as we speak today, Finland, Hungary, Spain, Mexico, Russia, Romania, Belgium, Austria have all fallen into recession.
“But we are very confident that with the intervention policies, with the fiscal and monetary interventions the government has put in place, the recession will be short-lived.”